New tax-filing obligations await many unsuspecting Canadians in 2024
The Articles Main Idea:
1. New tax-reporting obligations for trusts in Canada will result in paperwork and high costs for many Canadians.
2. The new rules require trusts to annually file a T3 Trust Income Tax and Information Return and disclose beneficiaries, among other information.
3. Canadians who are part of a "bare trust" may not be aware of their filing obligations and could incur accounting and legal fees to meet those obligations.
4. Bare trusts are those where the trustee can only act at the beneficiary's direction, with no independent powers or responsibility over the property.
5. The Canada Revenue Agency will waive late-filing penalties for bare trusts that submit their T3 returns for the 2023 tax year after the deadline of March 30, 2024.
Original Article Source Credits: The Globe and Mail
Article Written By: Erica Alini
Original Article Posted on: Dec 28, 2023